Consulting Sector M&A Deals (April 4th – April 20th)

businessman doing handstand on the beachStantec to Acquire MWH, a Global Professional Services Firm with Leading Expertise in Water Resources Infrastructure
Deal Size: $793m Industry: Professional Services Date: April 04, 2016
Stantec Inc. (“Stantec” or the “Company”) is pleased to announce that it has entered into a definitive merger agreement pursuant to which it will acquire MWH Global, Inc. (“MWH”), a Broomfield, Colorado-based global engineering, consulting and construction management firm focused on water and natural resources for built infrastructure and the environment (the “Acquisition”). With the acquisition of MWH and its 6,800 worldwide employees, Stantec will gain a position as a global leader in water resources infrastructure while earning greater presence in key targeted geographies, including the United Kingdom, Australia, New Zealand, South and Central America, Europe and the Middle East.
Under the terms of the all-cash deal, unanimously approved by the boards of directors of both companies, Stantec will acquire all of the issued and outstanding capital stock of MWH for a purchase price of approximately US$793 million (the “Purchase Price”). The transaction is valued at approximately US$795 million after taking into account the estimated assumed net indebtedness of MWH, representing approximately 9.5 x 2015 Adjusted EBITDA. After giving full effect to Stantec’s expected run-rate annual synergies of $33 million (approximately US$25 million), the transaction is valued at approximately 7.3 x 2015 Adjusted EBITDA. These synergies are expected to be fully realized in 2017.
“MWH brings a global presence and reputation in water infrastructure that will advance Stantec’s position as a top-tier design firm within the highly attractive global water market,” says Bob Gomes, Stantec president and chief executive officer (CEO). “Together, we share a commitment to our communities and have the combined talent to support the most technically advanced clients and projects locally and around the world.”

Accumen acquires Ann Arbor-based Chi Solutions
Deal Size: Undisclosed Industry: Healthcare Consulting Date: April 06, 2016
San Diego-based Accumen Inc., a clinical laboratory company, has acquired Chi Solutions Inc. of Ann Arbor.Details of the deal were not disclosed.
Combining the two laboratory and consulting organizations will make Accumen one of the nation’s largest hospital laboratory management and support organizations, said Jeff Osborne, CEO of Accumen.
“With health care payment and delivery reform continuing to drive value-based health care, Accumen and Chi are well positioned to meet the needs and opportunities in the laboratory using proven results and successful partnership models,” Osborne said in a statement. Chi CEO Kathleen Murphy said joining Accumen will help the 22-year-old company grow even more.
“At no time in our history has a partnership been as complimentary, as transformative, or as powerful as the combination of Accumen and Chi. This power translates to more value for our clients, better opportunity for our employees and the creation of best-in-class provider for our industry,” Murphy said in a statement.

Duff & Phelps : Acquires Tregin Solutions
Size: Undisclosed Industry: Management Consulting Date: April 05, 2016
Duff & Phelps, the premier global valuation and corporate finance advisor, today announced the acquisition of Tregin Solutions, Inc., a legal management consulting firm that assists corporate legal departments and law firms with process, technology and strategy solutions that build value, improve operational performance and reduce risk. Tregin Solutions’ 14 experienced professionals will join Duff & Phelps’ Legal Management Consulting practice.
“This acquisition cements Duff & Phelps’ position as the leading provider of legal strategy, process and technology solutions and significantly enhances our governance and compliance related service offerings globally,” said Jacob Silverman, President of Duff & Phelps. “The transaction expands our expertise in legal spend, matter and entity management; augments our ability to deliver contract management automation, which is the fastest growing solution in our industry; and creates new intellectual property lifecycle management consulting expertise and solutions. Equally important, the expansion comes from integrating a team we have worked with and respected for years.”
“I am excited about our new combined scale, expertise and product offering, and am even more enthusiastic for the opportunity to work closely with a team that shares our perspective on serving the market,” said Hassan El Asraoui, former CEO of Tregin Solutions and now Managing Director, Legal Management Consulting at Duff & Phelps. “Like us, Duff & Phelps believes that effective application strategy, process and technology are critical in helping law departments achieve their desired goals.”
Duff & Phelps offers Legal Management Consulting services designed to help legal departments and law firms improve performance and efficiency, reduce costs and enhance organizational effectiveness. The firm’s specialized team has decades of experience in all areas of strategy and operations, technology, information governance and litigation readiness.

Arthur J Gallagher : Acquires Capitol Benefits Group
Deal Size: Undisclosed Industry: Human Resources Consulting Date: April 05, 2016
Arthur J. Gallagher & Co. (NYSE: AJG) today announced the acquisition of Capitol Benefits Group in Oklahoma City, Oklahoma. Terms of the transaction were not disclosed.
Founded in 1999, Capitol Benefits Group (Capitol) is an employee benefits insurance broker that provides employee benefits insurance products and consulting services to small and middle-market businesses and individual clients throughout the Central United States. They specialize in strategic planning, building tailored benefit programs and other HR/benefit solutions such as wellness plans, compliance support and employee communications. Charles Paine, Diane Paine and their team will continue to operate from their current location under the direction of John Neumaier, head of Gallagher’s South Central employee benefit consulting and brokerage operations.
“Capitol’s team has the expertise, market relationships and quality service that we value in our acquisition partners,” said J. Patrick Gallagher, Jr., Chairman, President and CEO. “In addition, their Oklahoma presence and their team-based sales culture will be a terrific complement to our growing employee benefits brokerage and consulting operation. We are pleased to welcome Chuck, Diane and their associates to our growing Gallagher family of professionals.”
Arthur J. Gallagher & Co., an international insurance brokerage and risk management services firm, is headquartered in Itasca, Illinois, has operations in 31 countries and offers client-service capabilities in more than 150 countries around the world through a network of correspondent brokers and consultants.

GTI International acquires BKi
Deal Size: Undisclosed Industry: Energy & Gas Date: April 08, 2016
GTI International, a subsidiary of Gas Technology Institute, said it has acquired BKi, a professional energy services and consulting firm serving energy efficiency, energy supply, and alternative transportation markets. Terms of the acquisition were not announced.
BKi was founded in Oakland, California, in 1981, and has since added offices in Los Angeles and West Sacramento to serve its clients and accommodate staff. The company works primarily on energy efficiency program design, development, implementation, and consulting. They offer services in training and technical assistance, community development, stakeholder engagement, program administration, and technical regulatory support.
In the transportation arena, BKi operates the California Fuel Cell Partnership, a public/private collaborative focused on bringing fuel cell vehicles powered by hydrogen to the commercial market. BKi provides staffing and management for the organization’s activities and its showcase headquarters in West Sacramento. BKi’s areas of expertise also include water efficiency and advanced power generation with carbon capture and storage.
“We now have critical mass in California focused on energy efficiency markets,” said Ron Snedic, GTI International president and vice president of corporate development at GTI. “This really puts us in a great position to drive growth and market impact.”
With the addition, GTI and GTII will have more than 100 energy professionals in the state delivering energy efficiency solutions across diverse markets. This strong presence will help GTI better serve clientele.
“BKi is a great addition helping to round out our energy efficiency, energy conversion, and alternative transportation portfolio. Building on our previous acquisitions, we continue to expand the services we provide our customers, increasing the value and impact of our collective organizations,” said Snedic.

WS Atkins plc completes the acquisition of nuclear services division of EnergySolutions
Deal Size: $318m Industry: Energy & Gas Date: April 12, 2016
WS Atkins plc (“Atkins”), the design, engineering and project management consultancy, is pleased to announce that on 11 April 2016 it completed its previously announced acquisition of the Projects, Products and Technology segment of EnergySolutions (“PP&T”).
PP&T is an innovative nuclear energy business, comprising 650 people delivering a wide range of technical engineering and programme management services for the decontamination and decommissioning of high hazard government nuclear facilities.
Professor Dr Uwe Krueger, CEO said, “This acquisition accelerates our nuclear strategy and creates a global platform. Our combined business is well positioned in all the major nuclear markets in North America, UK, Europe, Middle East and Asia Pacific. In the US, which has the largest nuclear fleet, we are at the top table for decommissioning, site operations, major projects and consultancy.”
Atkins acquired PP&T for an enterprise value of US$318m. The consideration was funded from Atkins’ existing cash resources and available committed bank facilities.

Ankura Consulting Group Acquires Marotta Gund Budd & Dzera, LLC
Deal Size: Undisclosed Industry: HR Consulting Date: April 11, 2016
Ankura Consulting Group (“Ankura”), a business advisory and expert services firm, announced today that it has acquired Marotta Gund Budd & Dzera, LLC (“MGBD”), a nationally recognized turnaround and restructuring firm.
MGBD is led by its two principals and founders, Stephen Marotta and Philip Gund, who have over 50 years of combined experience advising investors, boards of directors, senior management as well as the creditor constituencies of underperforming companies.   MGBD’s professionals have also served in crisis management roles domestically and abroad including CEO, CRO, and CFO.
The acquisition of MGBD comes on the heels of Ankura’s recent announcement of a commitment of $100 million from Madison Dearborn Partners.
“Steve and Phil are great leaders and excellent cultural fits for us,” said Kevin Lavin, Co-President of Ankura. “MGBD brings a wealth of experience in leading, developing strategies and then coalescing disparate stakeholders through complex stressed and distressed situations.  Their addition is another step in building out our Turnaround and Restructuring practice.”
“Ankura is rapidly assembling top-level talent and capabilities to become the preferred business advisory firm,” said Stephen Marotta, principal of MGBD, “We are excited to join Ankura’s team and look forward to building a dynamic practice together.”
Philip Gund, principal of MGBD, added “Ankura’s collaborative culture and focus on quality of service provides us with a platform to lead some of the more challenging restructurings.”
With the MGBD acquisition, Ankura now has over 100 professionals with offices in Atlanta, Dallas, New Jersey, New York, Los Angeles and Washington D.C.  Ankura’s New York office will now be located at 747 3rd Avenue.

Iris acquires consultancy launched by ex-Gyro chiefs
Deal Size: Undisclosed Industry: Digital Marketing Date: April 19, 2016
Iris Worldwide has acquired creative planning and strategy consultancy Founded – set up by two former Gyro chiefs – as part of plans to tap into the west coast of the US. The deal sees Iris take a majority stake in the agency as the two agencies aim to spread their tenticles into the B2B market.
Founded has offices in London and San Francisco and offers brand planning, marketing strategy, communication planning, CRM and social CRM, digital planning and proposition development.
Perry started his career at Haymarket Publishing in 1994, joining Gyro as European vice-president two years later. He was promoted to chief operating officer in 2008, following the departure of founder Gary Brine.
Mabbott had spells at Business Research Group,Ford Motor Company, and mobile firm 3, before joining Gyro in 2005.
Founded’s clients include P&O Cruises, Uniqlo and the Financial Times.
Iris chief executive Ian Millner (pictured, far left) said: “We are really excited to be working with Founded; I think we can learn loads from each other and will benefit from their skills and experiences. We will also be able to work together to build an exciting opportunity in San Francisco, and a more progressive view of the global B2B market.
“I’ve known Richard and Richard for a long time… the business they are building at Founded speaks for itself. I know that they will continue to flourish as part of the Iris network and equally, as part of our extended Cheil ‘Network Built For Now’ idea.”

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